Federal Trade Commission "Red Flag" regulations went into full enforcement as of May 1, 2009. Arguably all alarm companies who provide PERS service, maintain credit card information for their subscribers, or send invoices for recurring periodic revenue, are covered by the regulations. According to the regulations you need to have a written plan to deal with potential identify theft.
Here a link to FTC site with overview of the regulations: http://www.ftc.gov/bcp/edu/pubs/business/idtheft/bus23.pdf
As I write this article I am flip flopping all over the place. I don't think the regulations applies to alarm companies. It seems to apply to financial institutions who extend credit of with whom consumers deposit money and then spend it.
For those of you who think the regulations do apply then you can't go wrong complying.
Even if the regulations don't apply alarm companies do maintain infomation about their customers that is confidential and should be maintained as such. This information includes types of security, codes, passwords, scope of security, telephone information, addresses other than guarded premises, credit card information, banking information [you should make a copy of your subscriber's payment check], heath and emergency information [for PERS] and other information. The FTC rules require you to write down your procedure for safeguarding this information; shouldn't be too complex and you really should do it anyway.
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Comment - changing central stations
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Ken
I have seen central stations “give” an alarm company their own line for incoming dialer signals. Guess what – the alarm company does not own that line. It is owned and supplied by the monitoring station. Alarm companies must make sure that they are very careful when dealing with less than scrupulous monitoring stations. It is not always the monitoring company with the biggest booth at the trade show that will give you the legitimate story and service. And if alarm companies think that price is the most important barometer of service and quality–guess again.
Ivan Spector
Sentinel Alarm
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Comment - Disclaimer Notice form [available at www.alarmcontracts.com]
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Ken,
Thanks for recommending the Disclaimer. The way it is designed allows me to easily get the customers signature right beside a hand written statement stating system limitations.
Example:
I went to a customer's home to inspect their system before we took it over from a competitor. The burg portion of their system at least adequate. However there were only two working smokes (1 A/C and one on the system), 1 in the master bedroom and 1 in the hall to the kids rooms. The other A/C models were missing or disabled. After quoting the work that was needed to meet code. I clearly wrote out the limitations of her system and had her sign. Put the system online and left. She called sometime later, after confirming with her spouse and had us do the upgrades.
When I walked out her door. I knew without a doubt that I done my part. I could not force the customer to upgrade their system. But I had a legal document stating it needed more work done and that I explained such to the customer. I had proof.
Thanks for what you do. You are vital to our industry.
Victor Gurel
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